Hodlnaut Wants Judicial Management Oversight to Avoid Forced Liquidation

Singapore-based cryptocurrency lending startup, Hodlnaut has applied for a Judicial Management oversight with the Singapore High Court. The exchange made this announcement today as it seeks to maintain more direct and consistent communication with its customers.

In the application for Judicial Management, the platform has named restructuring veteran, Mr. Tam Chee Chong of Kairos Corporate Advisory Pte Ltd as its interim Judicial Manager as will be deemed fit by the court.

Judicial Management is a legal push in which the court will take over the administration of a particular distressed firm, and automatically grant it a moratorium to help avoid forced liquidations. The Hodlnaut team said it will rely on these moratoriums and the broader judicial management process to chart a better part toward resolving its current financial woes.

“As we work towards stabilising our financial situation, the Founders and the Hodlnaut team in Singapore are working closely with our lawyers, and have weighed various available options for our next steps,” the Hodlnaut announcement reads, “We are aiming to avoid a forced liquidation of our assets as it is a suboptimal solution that will require us to sell our users’ cryptocurrencies such as BTC, ETH, and WBTC at these current depressed asset prices. Instead, we believe that undergoing judicial management would provide the best chance of recovery.”

Holdnaut Moratorium Solace

While the application has been filed, Hodlnaut said the process can take a few months before approval is granted, if at all. The startup noted that the experience of Tam Chee Chong which spans 37 years in an advisory role is bound to help the firm in navigating these dark times in its history.

The platform said it sympathizes with its users whose funds are locked up, and that it is devising an exit strategy at current liquidity that can help some of its customers who wish to cash out at a loss. While it noted that there is uncertainty in the entire pursuit, it affirms that all of its user’s funds are not lost and it will continue to work to resolve its financial situation.

Hodlnaut, like other crypto lenders, halted withdrawals on its platform earlier this month, and like Vauld Group, it is also leaning on the court to grant it a moratorium to wade off angry clients that may be seeking legal redress.

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